User Account

All Pages

What is the required rate of return

Assignment Help Finance Basics
Reference no: EM132497698

1) Calculate the present value of $500 that is to be received 10 years from today, assuming an annual interest rate of 9%

2) Calculate the future value of $100 that you have today at t=0; you will deposit this $100 at 6% annual interest for four years.

3) Sally Smith has deposited $33,000 today into an account which will earn 10% interest annually. She plans to leave the funds in this account for seven years, earning interest. What will be the future value of this account at the conclusion of the seven-year time-frame?

4) Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12% on his contributions, how much money will he have in this IRA account at the conclusion of the 20 years?

5) Calculate the future value of an ordinary annuity of $1,000 received each year for 10 years, assuming a 3% annual interest rate.

6) A college received a contribution to its endowment fund of $2 million. The college can never touch the principal, but they can use the earnings. At an assumed annual interest rate of 9%, how much interest can the college earn each year from this $2 million investment to fund its operations?

7) Calculate the present value of an ordinary annuity of $2,350 received each year for eight years, assuming an annual interest rate of 10%.

8-9) The expected risk-free rate of return (RF) is 3%; the expected market return (rm) is 8%; and Tangshan's stock has a beta of 1.20.

a) Using the Security Market Line (SML) equation, what is the required rate of return (rs) on this stock?

Reference no: EM132497698

Questions Cloud

What must the beta be for stock b : What must the beta be for Stock B, the other stock in Jimmy's portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 3
Create a four vs profile of both operations : Create a Four Vs profile of both operations, and briefly explain each aspect of the two profiles. Explain why you think the profiles look the way they do
Describe mary wollstonecrafts response to the declaration : Describe Mary Wollstonecraft's response to the Declaration of Rights of Man in her essay "A Vindication of the Rights of Woman (1792)
What is the market expected return : Nagla'a has invested her money in Widget Inc.'s common stock which has an expected return of 16.5 percent.
What is the required rate of return : Using the Security Market Line (SML) equation, what is the required rate of return (rs) on this stock?
What common interests might possibly unite palestinians : What common interests might possibly unite Palestinians and Israelis? What could possibly happen to change the next fifty or sixty years from acrimony
What is impression of the caribbean as a result : DisneyWorld with white sands and cheap liquor. What is your impression of the Caribbean as a result of our study and readings for this week?
What is the expected value of the stock at time 15 : a. What is the expected value of the stock at time 15? b. What is the expected value of the stock at time 5?
Davidson consulting for project : What is the most that you would pay Davidson Consulting for this project?

Reviews

Write a Review

Finance Basics Questions & Answers

  Elements of media for an internal total rewards campaign

Analyze the elements of media choices for conducting an internal total rewards campaign to determine which is hardest to evaluate from the return.

  Years of an ordinary annuity cash flow

What is the future value in 3 years of an ordinary annuity cash flow of $259 every quarter of a year at the end of the period

  Within what range is the plant irr

As the capital budgeting director for Chapel Hill Coffins Company, you are evaluating construction of a new plant. The plant has a net cost of $5 million.

  What is the present value of growth opportunities

Build It Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 18%, and it will maintain a plowback ratio of 0.40. It's earnings this year will be $2 per share. Investors expect a 12% rate of return..

  Strategic management process

In a constantly and rapidly changing environment, developing and implementing a competent strategic plan is central to organization stability and viability

  What are the pre-tax profits from sales of course packs

Southwest U's campus book store sells course packs for $15 each, the variable cost per pack is $9, fixed costs to produce the packs are $200,000, and expected annual sales are 50,000 packs. What are the pre-tax profits from sales of course packs?

  Series of cash flows can be withdrawn starting

If Kaylie Windham has $425,000 to put into an account today, what series of cash flows can be withdrawn starting at t=0 (today) if all cash

  How much you will be able to spend each year in retirement

Ignore all tax considerations for this problem. (i) How much you will be able to spend each year in retirement?

  Discuss the importance of cash on hand and how it affects

Discuss the importance of cash on hand and how it affects the strength of the business. Would you agree that the amount of cash on hand is a factor when comparing like businesses?

  How you can apply to business administration

What is the best thing you have learned in Informatic system class? and how you can apply to business administration and management career?

  What is the current bond price

Staind, Inc., has 7 percent coupon bonds on the market that have 13 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 10 percent, what is the current bond price?

  Determine the total annual cost using order

a.) What order size would minimize the sum of annual ordering and carrying costs? b.) Determine the total annual cost using your order size from part (a)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd